We’ve written a lot about how the financial industry has begun to find the merits in blockchain and adopt it for more security and transparency. What we haven’t explored are alternative financial organizations like credit unions. They’ve been a little slower in adopting blockchain, even if they continually look for ways to compete with the bigger banks.
They may move ahead of some of their bank competitors thanks to a recent credit union consortium agreeing to support the above technology. Named CULedger, this group assembled last summer and comprised some of the biggest credit union names in the world. Basically, 55 credit unions (plus four of the biggest credit union service organizations) agreed to start using blockchain tech before the summer of this year.
It’s all spearheaded by the Credit Union National Association and Mountain West Credit Union Association.
Credit Unions Moving Ahead of Banks
With credit unions taking action now, they’re basically playing a strategy game in beating banks to the punch. Many of the world’s biggest banks already have a consortium organized to discuss using blockchain. Despite some banks moving slowly in using the technology, there isn’t a wide protocol in place yet to make it mainstream.
One reason behind this is the bigger banks have large corporate customers and don’t have as much incentive to help clients with transparency and privacy. Conversely, credit unions focus more on individual customers and helping them be able to bank in more secure ways.
It’s a major step forward in getting blockchain into the financial world, something the bigger banks may soon imitate.
Yet, how will blockchain specifically help credit union customers? The real incentive behind using the technology in banking is always symbiotic.
Improving How Credit Unions Function
First and foremost, credit unions want to use blockchain to help how they manage their organizations, including in financial transfers. Statistics show more people moving to credit unions lately for more individualized treatment and better services. You can expect this to increase dramatically once word gets out about blockchain use.
